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IMF's Lagarde questioned over French arbitration case

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24-05-2013 | 07:52

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IMF's Lagarde questioned over French arbitration case

IMF chief Christine Lagarde was questioned in court by French magistrates on Thursday over her role in a 285-million-euro ($366 million) arbitration payment made to a supporter of former president Nicolas Sarkozy.

Lagarde, in court the entire day, risks being placed under formal investigation when the hearing wraps up on Friday for her 2007 decision as Sarkozy's finance minister to use arbitration to settle a court battle between the state and businessman Bernard Tapie.

Under French law, that step would mean there exists "serious or consistent evidence" pointing to probable implication of a suspect in a crime. It is one step closer to trial but a number of such investigations have been dropped without trial.

REUTERS

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